Wendell Owns 115 Acres of Land with a Fair Market

Multiple Choice

Wendell owns 115 acres of land with a fair market value of $57,000. He purchased the land as an investment for $35,000 in 1993. Wendell trades the land for a 122-acre parcel adjacent to other property he owns. The 122 acres has a value of $57,000, and the exchange qualifies for like-kind deferral treatment. What is Wendell's recognized gain on the exchange?

A) $- 0 -
B) $22,000
C) $35,000
D) $57,000
E) $79,000